Sexual harassment allegations against SoFi CEO, other execs detailed in new report

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Details emerged Tuesday regarding sexual harassment allegations against Social Finance Inc. Chief Executive Mike Cagney, who announced Monday that he would step down.

Citing a number of current and former employees, the New York Times reported late Tuesday that Cagney, who is married, sent sexually explicit text messages to a female subordinate, was seen holding hands with another female employee and bragged in the office about his sexual conquests and the size of his genitalia.

The employee who received the unwanted text messages reportedly was paid $75,000 to leave the company in a settlement approved by SoFi’s board.

Cagney “vehemently denies” any wrongdoing, the Times said.

The complaints against Cagney were apparently not just sexual. Investors had also complained to the board about misstatements Cagney told them regarding SoFi’s student loan products, the Times reported, and colleagues were said to worry that his business style was too reckless.

On Monday, Cagney announced he was leaving the fintech startup by year’s end, saying recent litigation and “negative press have become a distraction from the company’s core mission.”

Tuesday’s revelations came to light publicly following a Wall Street Journal report Sunday, in which multiple female employees described an improper working environment at SoFi and said executives, including Cagney, engaged in or tolerated behavior that could be constituted as harassment.

The complaints detailed by the Times didn’t end with Cagney. Nino Fanlo, SoFi’s former chief financial officer, “talked openly about women’s breasts and once offered female employees bonuses for losing weight,” the Times reported, citing more than a dozen employees who witnessed the comments. Fanlo left the company in May. He denied the allegations made against him in both the New York Times and Wall Street Journal reports.

Other employees reported co-workers having sex with supervisors at the company’s satellite office in Healdsburg, Calif. “It was a frat house,” one female employee told the Times, adding that she was propositioned multiple times by a supervisor. “You would find people having sex in their cars and in the parking lot.”

In August, a former employee who worked at the Healdsburg office filed a sexual harassment lawsuit against SoFi, claiming he had been fired after reporting mistreatment of female colleagues.

San Francisco-based SoFi was founded in 2011 and has extended about $17 billion in consumer loans. A funding round in February valued the company at more than $4 billion.

SoFi is just the latest tech company where allegations of rampant sexual harassment have come to light recently. Uber Technologies Inc. has been wracked by sexual harassment scandals, which forced the ouster of founder and CEO Travis Kalanick. Dave McClure, co-founder of tech accelerator 500 Startups, resigned in July, apologizing and calling himself “a creep” following reports of sexual harassment. And in 2016, San Francisco-based Zenefits announced a crackdown against drinking and having sex in the office in an effort to present a more professional work atmosphere.